Fed Chair Jerome H. Powell and Treasury Secretary Steven Mnuchin optimistic of economic rebound after crisis – joint congressional hearing. Growth facilitated by strong fiscal support, stimulus checks and jobless benefits. Still, jobs lost before the pandemic to be recovered.
- Combined monetary and fiscal policy to accelerate recovery
- Fed will temporarily relax banking regulations to ease customer service during pandemic and open to doing more of that
- No plans to change or review schedule for bank’s living wills
- Fed’s secondary bond market purchases support financial conditions in the corporate credit market; they will not extend credit to any borrower.
- Much good economic news since the CARES Act
- More fiscal support needed for American workers and businesses
- Legislation needed to reallocate money to better use
Stocks responding favorably to economic update. DAX: INDEXDB is up 1%, Oil: NYMEX is up 1% percent
